• Jim Sinegal, cofounder and CEO of Costco, was the driving force behind Costco’s 25 year march to become the fourth largest retailer in the US and the eighth largest in the world. o Far from stereotypical CEO o Casual when going into stores even
Wore costco clothing and wore regular name tag that said “Jim” on it o He would even pick up the phones o spent much of his time travelling from store to store in a private jet visiting 8-10 stores daily and the most ever was 12 o Company that is on a first name basis
• When visiting stores, he functioned as a producer, director and a person in charge o Lots of questions for store managers
Stock levels on particular items
Critique merchandising …show more content…
• At the age of 25 Sinegal became the manager of the original san diego atore. o Price saw that sinegal has a special knack for spotting what the store was missing and was good at the whole discount thing
• The store became profitable again.
• He mirrored sold price attention to detail and absorbed all the nuances and subtleties of his mentor’s style of operating o Improving sotre operation, keeping operating costs and overhead low, stocking items that moved quickly, and charging ulta-low prices that kept cusmters coming back to the shop.
This is when Sinegal left the store and opened his own warehouse club store
• Sinegal joined with Seattle entrepreneur Jeff Brotman (now chairman of the board of directors) to found Costco.
• First store opened in seattle in 1983 o Same time walmart opened their warehouse membership format called Sam’s club.
• By the end of 1984, there were nice Costco stores in five states serving more than 200,000 members. In December 1985, Costco became a public